Gold Prices Pull Back Amid Rate Hike Concerns

The price of gold has retreated due to traders adjusting their bets on the Federal Reserve's interest rate hike after a higher-than-expected PCE Price Index report. The index remained unchanged at 3.7% in July, exceeding analyst consensus of 3.6%. This development raised concerns about potential rate hikes from the Fed, with a 54.7% probability of a rate hike in October, according to the FedWatch Tool.

The PCE Price Index report and its implications for interest rates have led to higher Treasury yields, with the yield of 2-year Treasuries moving above 4.22% and the yield of 10-year Treasuries settling above 4.66%. The stronger dollar has put additional pressure on gold and other precious metals.

Gold failed to settle above the resistance level at $4630-$4650 and pulled back towards the $4600 level, potentially heading towards the support level at $4480-$4500 if it settles below $4600. On the upside, a settlement above $4650 would give gold a chance to gain momentum in the near term and head towards the resistance level at $4780-$4800.